The trial balance of Pacilio Security Services, Inc as of January 1, Year 11, had the following normal balances Cash $ 113,718 Petty cash 100 Accounts receivable 39,390 Allowance for doubtful accounts 4,662 Supplies 210 Merchandise inventory (48 $300) 14,400 Equipment 9,000 Van 27,000 Building 125,000 Accumulated depreciation 28,075 Land 25,000 Sales tax payable 390 Employee income tax payable 1,000 FICASocial Security tax payable 840 FICAMedicare tax payable 210 Warranty payable 918 Unemployment tax payable 945 Notes payableBuilding 92,762 Bonds payable 50,000 Discount on bonds payable 800 Common stock 50,000 Retained earnings 124,816 During Year 11, Pacilio Security Services experienced the following transactions Paid the sales tax payable from Year 10 Paid the balance of the payroll liabilities due for Year 10 (federal income tax, FICA taxes, and unemployment taxes) Issued 5,000 additional shares of the $5 par value common stock for $8 per share Issued 1,000 shares of $50 stated value, 5 percent cumulative preferred stock for $52 per share Purchased $500 of supplies on account Purchased 190 alarm systems at a cost of $310 Cash was paid for the purchase After numerous attempts to collect from customers, wrote off $3,670 of uncollectible accounts receivable Sold 210 alarm systems for $600 each plus sales tax of 5 percent All sales were on account Record the cost of goods sold related to the sale from Event 8 using the FIFO method Billed $125,000 of monitoring services for the year Credit card sales amounted to $58,000, and the credit card company charged a 4 percent fee The remaining $67,000 were sales on account Sales tax is not charged on this service Replenished the petty cash fund on June 30 The fund had $10 cash and receipts of $75 for yard mowing and $15 for office supplies expense Collected the amount due from the credit card company Paid the sales tax collected on $105,000 of the alarm sales Collected $198,000 of accounts receivable during the year Paid installers and other employees a total of $96,000 for salaries for the year Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1 5 percent Federal income taxes withheld amounted to $10,600 No employee exceeded $110,000 in total wages The net salaries were paid in cash On October 1, declared a dividend on the preferred stock and a $1 per share dividend on the common stock to be paid to shareholders of record on October 15, payable on November 1, Year 11 Paid $1,625 in warranty repairs during the year On November 1, Year 11, paid the dividends that had been previously declared Paid $18,500 of advertising expense during the year Paid $6,100 of utilities expense for the year Paid $9,200 of the Employee Income Tax Payable, $5,280 of the FICA Tax Soc Sec Tax Payable and $1,320 of the FICA Tax Medicare Tax Payable Also, paid the Payroll Tax Expense for the 7 5 employer matching of FICA taxes on $88,000 of salaries Paid the accounts payable Paid bond interest and amortized the discount The bond was issued in Year 10 and pays interest at 6 percent Paid the annual installment of $14,238 on the amortized note The interest rate for the note is 7 percent Adjustment There was $190 of supplies on hand at the end of the year Recognized the uncollectible accounts expense for the year using the allowance method Pacilio now estimates that 1 percent of sales on account will not be collected Recognized depreciation expense on the equipment, van, and building The equipment, purchased in Year 8, has a five year life and a $2,000 salvage value The van has a four year life and a $6,000 salvage value The building has a 40 year life and a $10,000 salvage value The company uses straight line for the equipment and the building The van is fully depreciated The alarm systems sold in transaction 7 were covered with a one year warranty Pacilio estimated that the warranty cost would be 2 percent of alarm sales The unemployment tax on the three employees has not been paid Record the accrued unemployment tax on the salaries for the year The unemployment tax rate is 4 5 percent and gross wages for all three employees exceeded $7,000 Recognized the employer Social Security and Medicare payroll tax that has not been paid on $8,000 of salaries expense Journal entry worksheet date general journal debit credit dec31 1 Paid the sales tax payable from Year 10 2Paid the balance of the payroll liabilities due for Year 10 (federal income tax, FICA taxes, and unemployment taxes) 3 Issued 5,000 additional shares of the $5 par value common stock for $8 per share 4 Issued 1,000 shares of $50 stated value, 5 percent cumulative preferred stock for $52 per share 5 Purchased $500 of supplies on account 6 Purchased 190 alarm systems at a cost of $310 Cash was paid for the purchase 7 After numerous attempts to collect from customers, wrote off $3,670 of uncollectible accounts receivable 8 Sold 210 alarm systems for $600 each plus sales tax of 5 percent All sales were on account 9 Record the cost of goods sold related to the sale from Event 8 using the FIFO method 10 Billed $125,000 of monitoring services for the year Credit card sales amounted to $58,000, and the credit card company charged a 4 percent fee The remaining $67,000 were sales on account Sales tax is not charged on this service 11 Replenished the petty cash fund on June 30 The fund had $10 cash and receipts of $75 for yard mowing and $15 for office supplies expense 12 Collected the amount due from the credit card company 13 Paid the sales tax collected on $105,000 of the alarm sales 14 Collected $198,000 of accounts receivable during the year 15 Paid installers and other employees a total of $96,000 for salaries for the year Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1 5 percent Federal income taxes withheld amounted to $10,600 No employee exceeded $127,200 in total wages The net salaries were paid in cash 16 On October 1, declared a dividend on the preferred stock and a $1 per share dividend on the common stock to be paid to shareholders of record on October 15, payable on November 1, Year 11 17 Paid $1,625 in warranty repairs during the year 18 On November 1, Year 11, paid the dividends that had been previously declared 19 Paid $18,500 of advertising expense during the year 20 Paid $6,100 of utilities expense for the year 21 Paid $9,200 of the Employee Income Tax Payable, $5,280 of the FICA Tax Soc Sec Tax Payable and $1,320 of the FICA Tax Medicare Tax Payable Also, paid the Payroll Tax Expense for the 7 5 employer matching of FICA taxes on $88,000 of salaries 22 Paid the accounts payable 23 Paid bond interest and amortized the discount The bond was issued in Year 10 and pays interest at 6 percent 24 Paid the annual installment of $14,238 on the amortized note The interest rate for the note is 7 percent 25 There was $190 of supplies on hand at the end of the year Prepare the adjusting journal entry if necessary 26 Recognized the uncollectible accounts expense for the year using the allowance method Pacilio now estimates that 1 percent of sales on account will not be collected Prepare the adjusting journal entry, if necessary 27 Recognized depreciation expense on the equipment, van, and building The equipment, purchased in Year 8, has a 5 year life and a $2,000 salvage value The van has a 4 year life and a $6,000 salvage value The building has a 40 year life and a $10,000 salvage value The company uses straight line for the equipment and the building The van is fully depreciated 28 The alarm systems sold in transaction 7 were covered with a one year warranty Pacilio estimated that the warranty cost would be 2 percent of alarm sales Prepare the adjusting journal entry, if necessary 29 The unemployment tax on the three employees has not been paid Record the accrued unemployment tax on the salaries for the year The unemployment tax rate is 4 5 percent and gross wages for all three employees exceeded $7,000 Prepare the adjusting journal entry, if necessary 30 Recognized the employer Social Security and Medicare payroll tax that has not been paid on $8,000 of salaries expense Prepare the adjusting journal entry, if necessary 31Record the closing entry for the revenue accounts 32Record the closing entry for the expense accounts 33 Record the closing entry for dividends account

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The trial balance of Pacilio Security Services, Inc. as of January 1, Year 11, had the following normal balances: Cash $ 113,718 Petty cash 100

The trial balance of Pacilio Security Services, Inc. as of January 1, Year 11, had the following normal balances:


Cash	$	113,718
Petty cash		100
Accounts receivable		39,390
Allowance for doubtful accounts		4,662
Supplies		210
Merchandise inventory (48 @ $300)		14,400
Equipment		9,000
Van		27,000
Building		125,000
Accumulated depreciation		28,075
Land		25,000
Sales tax payable		390
Employee income tax payable		1,000
FICASocial Security tax payable		840
FICAMedicare tax payable		210
Warranty payable		918
Unemployment tax payable		945
Notes payableBuilding		92,762
Bonds payable		50,000
Discount on bonds payable		800
Common stock		50,000
Retained earnings		124,816

During Year 11, Pacilio Security Services experienced the following transactions:

Paid the sales tax payable from Year 10.
Paid the balance of the payroll liabilities due for Year 10 (federal income tax, FICA taxes, and unemployment taxes).
Issued 5,000 additional shares of the $5 par value common stock for $8 per share.
Issued 1,000 shares of $50 stated value, 5 percent cumulative preferred stock for $52 per share.
Purchased $500 of supplies on account.
Purchased 190 alarm systems at a cost of $310. Cash was paid for the purchase.
After numerous attempts to collect from customers, wrote off $3,670 of uncollectible accounts receivable.
Sold 210 alarm systems for $600 each plus sales tax of 5 percent. All sales were on account.
Record the cost of goods sold related to the sale from Event 8 using the FIFO method.
Billed $125,000 of monitoring services for the year. Credit card sales amounted to $58,000, and the credit card company charged a 4 percent fee. The remaining $67,000 were sales on account. Sales tax is not charged on this service.
Replenished the petty cash fund on June 30. The fund had $10 cash and receipts of $75 for yard mowing and $15 for office supplies expense.
Collected the amount due from the credit card company.
Paid the sales tax collected on $105,000 of the alarm sales.
Collected $198,000 of accounts receivable during the year.
Paid installers and other employees a total of $96,000 for salaries for the year. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1.5 percent. Federal income taxes withheld amounted to $10,600. No employee exceeded $110,000 in total wages. The net salaries were paid in cash.
On October 1, declared a dividend on the preferred stock and a $1 per share dividend on the common stock to be paid to shareholders of record on October 15, payable on November 1, Year 11.
Paid $1,625 in warranty repairs during the year.
On November 1, Year 11, paid the dividends that had been previously declared.
Paid $18,500 of advertising expense during the year.
Paid $6,100 of utilities expense for the year.
Paid $9,200 of the Employee Income Tax Payable, $5,280 of the FICA Tax Soc. Sec. Tax Payable and $1,320 of the FICA Tax Medicare Tax Payable. Also, paid the Payroll Tax Expense for the 7.5% employer matching of FICA taxes on $88,000 of salaries.
Paid the accounts payable.
Paid bond interest and amortized the discount. The bond was issued in Year 10 and pays interest at 6 percent.
Paid the annual installment of $14,238 on the amortized note. The interest rate for the note is 7 percent.

Adjustment

There was $190 of supplies on hand at the end of the year.
Recognized the uncollectible accounts expense for the year using the allowance method. Pacilio now estimates that 1 percent of sales on account will not be collected.
Recognized depreciation expense on the equipment, van, and building. The equipment, purchased in Year 8, has a five-year life and a $2,000 salvage value. The van has a four-year life and a $6,000 salvage value. The building has a 40-year life and a $10,000 salvage value. The company uses straight-line for the equipment and the building. The van is fully depreciated.
The alarm systems sold in transaction 7 were covered with a one-year warranty. Pacilio estimated that the warranty cost would be 2 percent of alarm sales.
The unemployment tax on the three employees has not been paid. Record the accrued unemployment tax on the salaries for the year. The unemployment tax rate is 4.5 percent and gross wages for all three employees exceeded $7,000.
Recognized the employer Social Security and Medicare payroll tax that has not been paid on $8,000 of salaries expense.

Journal entry worksheet

date	general journal	debit	credit
dec31

1.Paid the sales tax payable from Year 10.

2Paid the balance of the payroll liabilities due for Year 10 (federal income tax, FICA taxes, and unemployment taxes).

3.Issued 5,000 additional shares of the $5 par value common stock for $8 per share.

4.Issued 1,000 shares of $50 stated value, 5 percent cumulative preferred stock for $52 per share.

5.Purchased $500 of supplies on account.

6.Purchased 190 alarm systems at a cost of $310. Cash was paid for the purchase.

7.After numerous attempts to collect from customers, wrote off $3,670 of uncollectible accounts receivable.

8.Sold 210 alarm systems for $600 each plus sales tax of 5 percent. All sales were on account.

9.Record the cost of goods sold related to the sale from Event 8 using the FIFO method.

10.Billed $125,000 of monitoring services for the year. Credit card sales amounted to $58,000, and the credit card company charged a 4 percent fee. The remaining $67,000 were sales on .account. Sales tax is not charged on this service.

11.Replenished the petty cash fund on June 30. The fund had $10 cash and receipts of $75 for yard mowing and $15 for office supplies expense.

12.Collected the amount due from the credit card company.

13.Paid the sales tax collected on $105,000 of the alarm sales.

14.Collected $198,000 of accounts receivable during the year.

15.Paid installers and other employees a total of $96,000 for salaries for the year. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1.5 percent. Federal income taxes withheld amounted to $10,600. No employee exceeded $127,200 in total wages. The net salaries were paid in cash.

16.On October 1, declared a dividend on the preferred stock and a $1 per share dividend on the common stock to be paid to shareholders of record on October 15, payable on November 1, Year 11.

17.Paid $1,625 in warranty repairs during the year.

18.On November 1, Year 11, paid the dividends that had been previously declared.

19.Paid $18,500 of advertising expense during the year.

20.Paid $6,100 of utilities expense for the year.

21.Paid $9,200 of the Employee Income Tax Payable, $5,280 of the FICA Tax Soc. Sec. Tax Payable and $1,320 of the FICA Tax Medicare Tax Payable. Also, paid the Payroll Tax Expense for the 7.5% employer matching of FICA taxes on $88,000 of salaries.

22.Paid the accounts payable.

23.Paid bond interest and amortized the discount. The bond was issued in Year 10 and pays interest at 6 percent.

24.Paid the annual installment of $14,238 on the amortized note. The interest rate for the note is 7 percent.

25.There was $190 of supplies on hand at the end of the year. Prepare the adjusting journal entry if necessary.

26.Recognized the uncollectible accounts expense for the year using the allowance method. Pacilio now estimates that 1 percent of sales on account will not be collected. Prepare the adjusting journal entry, if necessary.

27.Recognized depreciation expense on the equipment, van, and building. The equipment, purchased in Year 8, has a 5-year life and a $2,000 salvage value. The van has a 4-year life and a $6,000 salvage value. The building has a 40-year life and a $10,000 salvage value. The company uses straight-line for the equipment and the building. The van is fully depreciated.

28.The alarm systems sold in transaction 7 were covered with a one-year warranty. Pacilio estimated that the warranty cost would be 2 percent of alarm sales. Prepare the adjusting journal entry, if necessary.

29.The unemployment tax on the three employees has not been paid. Record the accrued unemployment tax on the salaries for the year. The unemployment tax rate is 4.5 percent and gross wages for all three employees exceeded $7,000. Prepare the adjusting journal entry, if necessary.

30.Recognized the employer Social Security and Medicare payroll tax that has not been paid on $8,000 of salaries expense. Prepare the adjusting journal entry, if necessary.

31Record the closing entry for the revenue accounts.

32Record the closing entry for the expense accounts.

33.Record the closing entry for dividends account.